John Slipp, who took over his father’s duty-free store in 1994, recently closed the Woodstock Duty Free Shop Inc. due to a significant drop in traffic at the U.S.-Canada border. This decline has severely impacted a business already struggling from the effects of the COVID-19 pandemic. At 59, Slipp is now seeking alternative sources of income and is calling for increased government support for duty-free stores.

The downturn in business is linked to fewer Canadians traveling to the U.S., a trend exacerbated by U.S. trade tensions and concerns about border treatment. Slipp noted that reduced border traffic directly leads to decreased sales. "It was very difficult. The business had many good years. I certainly didn’t want to be in the position of calling an end to a business career, giving up, calling it quits, both personally and in terms of my late father," he said.

At its peak in the early 2000s, Slipp’s store employed about 15 people. However, by March 2020, he had to lay off four employees and reopened with just two after the pandemic. By the end of 2024, his sales were still down about 20% compared to 2019. The situation worsened from January to April this year, leading to his decision to close the store.

Statistics Canada reported a 36.9% decrease in return trips from the U.S. by Canadian residents in July, marking the seventh consecutive month of declines. Barbara Barrett, executive director of the Frontier Duty Free Association, described the industry as being in a "full-blown crisis." Sales at duty-free stores have plummeted by 40% to 50% year-over-year since late January, with some locations experiencing declines of up to 80%.

Barrett emphasized that this summer should be a peak season, but instead, traffic levels resemble those seen during the pandemic. She expressed concern that more store closures may occur as summer ends. Unlike airport duty-free shops, which are often owned by large international companies, land border stores are typically independently owned and family-run.

Travel expert Claire Newell noted that many Canadians are choosing domestic and international destinations over U.S. travel. "We live in a country where it’s still very expensive to travel domestically. And while there are many people who are choosing to travel within Canada, we also see more people heading to popular destinations," she said. Newell believes that Canadians' travel habits will not return to normal until a fair trade deal is established.

In light of the challenges, Barrett is advocating for regulatory changes to help the industry. "We have some taxes on our products that, believe it or not, in a tax- and duty-free industry that our U.S. competitors don’t have. So we’re asking for those to be changed so we can be more competitive," she said. She also called for access to tariff relief programs and pandemic-level support similar to what was provided during the pandemic.

Barrett highlighted that many duty-free stores rent land from the government and would benefit from rent deferrals or subsidies until travel patterns stabilize. Conversations have taken place between her organization and government officials, who acknowledged the association's requests for support.

An announcement regarding the closure of the Woodstock Duty Free Shop mentioned that both federal and provincial governments had promised tariff relief programs for businesses affected by trade tensions. Slipp expressed disappointment, stating, "I pinned a lot of hopes on those when both levels of government made those announcements. I was reminded of the pandemic support programs."

As he reflects on the future of the industry, Slipp is not optimistic. "I’m grieving the loss of my business, but I’m also accepting the reality that the business environment has changed and there is nothing in the bag of tricks that would suggest positive changes in this industry in the short to medium term," he said. "I’m feeling bad that I was not able to succeed in the end and that I am having to lay to rest this business that my father and I have built and spent so many years working so hard on."